Northern Power Tools and Equipment Limited (01016028): administration
- Status
- Administration ended
- Administration began
- 2020-04-21
- Administrators
- Steven Muncaster, Stephen Gerard Clancy
- Administrators' firm
- Kroll
- Formerly
- Northern Power Tool and Equipment Limited
- Incorporated
- 1971-06-29
- Location
- Manchester
- Industry
- 25620 Machining
Why it went into administration
- COVID-19
- Supply chain disruption
- Creditor pressure / legal action
- Loss of a key customer, supplier or contract
- Bad debts / customer insolvency
- Sustained trading losses
- Competition / price pressure
From the administrators' statement
‘The principal cause for the Company's failure was the collapse of two of its largest customers which accounted for a significant percentage of the Company’s revenue. The Company also had to'pay a significant sum (believed to be in the region of £1m) to the previous directors after the initial purchase by the current Director.
Changes to the Company’s supply chain credit terms have increased the Company's financial difficulties and creditor pressure, resulting in the position whereby the Company i is now unable to trade in its current guise.
This created a bottleneck on orders received as the Company could not afford to pay proforma invoices leading to a further loss of market share. The aforementioned is sighted as a contributing factor to the .Company reporting significant operating losses in 2018. .
Administrators' statement of proposals (2020-06-22) · Companies House register